Skip Nav
Header Logo
  • 855-215-2160

IA Plumbing & Mechanical Contractor Bond

What is an Iowa plumbing and mechanical contractor bond?

The Iowa Plumbing and Mechanical Systems Board requires all plumbers, HVAC/R, sheet metal, hydronic, and mechanical professionals to be licensed through the Iowa Division of Labor. One of the state’s licensing requirements is a surety bond in a minimum amount of $5,000.

Like other bonds, your plumbing and mechanical contractor bond acts as a legal agreement between three parties:

  • The surety: the issuer of the bond, such as NNA Surety Bonds
  • The obligee: the state or local agency requiring the bond
  • The principal: the contractor who is posting the bond

A bond is not insurance. While insurance protects you and your business, a bond protects your customer. In some cases, your bond may also protect the state in the event that your company violates a law.

How much does an Iowa plumbing and mechanical contractor bond cost?

The cost for your contractor bond will vary based on several factors, including:

  • Your credit rating
  • The financial and licensing history of your business
  • The value of your bond

You will not have to pay the full value of the bond. Instead, you must only pay a percentage of the bond amount as an annual fee. This is known as the premium.

Your premium rate is heavily dependent on the financial history of your business and your personal credit score. Based on these factors, your premium can vary from as low as 1% to as much as 15% of the bond value.

In Iowa, plumbers and contractors must post a bond in the minimum amount of $5,000. NNA Surety Bonds offers this policy with premiums starting as low as $100 based on your credit.

Get your Plumber and Mechanical Contractor Bond. 

How IA contractor bonds work

surety bond helps to reimburse your customers if you do not complete a contracted job. In the event that you breach a contract, a claim can be made against your bond. If the claim against your bond is upheld, it will be used to pay a customer for their losses, up to the full value of the bond. Afterward, you will have to pay this amount back to the surety.

Upheld claims can make obtaining future bonds very difficult, if not impossible. This can jeopardize your license and your business. In this way, a surety bond helps promote job completion and adherence to industry regulations.

Why do plumbers and mechanical contractors need a bond?

In Iowa, plumbers, HVAC techs, hydronic system servicers, and other mechanical contractors are required to obtain and post a bond before they can be licensed to take contracts. Getting bonded is one of the first steps in being licensed.

Additionally, surety bonds are often required as a means to promote project completion and lawful practices by contractors and other professionals. In the event a job is unfinished by the contractor, a claim can be made against their bond, and, if the claim is upheld, the claimant will be reimbursed for any losses up to the total amount of the bond. The contractor must then pay this amount back to the surety.

What do I need for my Iowa plumber or mechanical contractor license?

An application may be completed and submitted online or on paper to the Iowa Plumbing & Mechanical Systems Board. The general requirements for a contractor license include the following:

  • Applicant must be at least 18 years of age.
  • Provide documentation of criminal convictions related to the practice of the profession, including a full explanation from the applicant.
  • File an application and pay related fees.
  • Post a surety bond in a minimum amount of $5,000.
  • Possess and provide a valid unemployment insurance number, even if you have no employees.
  • Provide evidence that the applicant maintains a permanent place of business.

For more information, visit the Iowa Plumbing & Mechanical Systems Board website.

Ready to get your Iowa contractor bond? Call NNA Surety Bonds at 855-968-1209.

The Simple Bonding Process

Request a free quote or view your price
Take the first step by requesting a free quote or viewing the price to discover unbeatable value.
Sign your contract and pay the premium.
Buy right now or easily get a quote for your surety bond.
Receive your surety or fidelity bond.
It's just that easy!
Have Questions? Call or Contact Us for a Quick Quote